Oil, gas and petrochemicals in Turkey

Petrochemicals

BMI has said that in the short term, the outlook for the petrochemicals industry in Turkey is challenging. The challenges include the depreciation of the lira and the rising cost of credit and the formers dampening effects on demand. However, BMI has said that export growth and low stocks should give the industry a bit of a boost going forward.

BMI also believe that the fundamentals of the Turkish petrochemicals market, being population growth, privatisation and the country’s increasing role as an energy and transport hub, will keep the market on investors lists. Big construction projects in the country are also likely to be a boost for the market and BMI see significant growth in the country’s auto market which will also help the petrochemicals sector.

Oil and gas

BMI has said that Turkey is going to remain reliant on imports for oil and gas for the foreseeable future. Unconventional developments in the Black Sea, are however a possibility for Turkey to claim some domestic oil and gas production.

When it comes to downstream, in June of this year, SOCAR secured US$ 3.29 billion in funding from lenders to support the STAR refinery and Azeri has said it will fund the remaining US$ 2.2 billion required for the project. Also, the gas industry in the country has been given a loan of US$ 400 million by the World Bank for Turkey to build its first gas storage facility.